Kauai Community College Stocktaking 2009-2011 Strategic Plan Update and Biennium Budget Request
BUDGET (2009 / 10 - 2011 / 12)
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description
BUDGET (2009 / 10 - 2011 / 12). Revenue. Insurance Accounting - Annual Financial Statements. Fair presentation of financial statements The Housing Consumers Protection Measures Act (Act No. 95 of 1998). The Public Finance Management Act (Act No. 1 of 1999). - PowerPoint PPT Presentation
Transcript of BUDGET (2009 / 10 - 2011 / 12)
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Insurance Accounting - Insurance Accounting - Annual Financial Annual Financial StatementsStatementsFair presentation of financial statements
• The Housing Consumers Protection Measures Act (Act No. 95 of
1998).
• The Public Finance Management Act (Act No. 1 of 1999).
• Standards of Generally Accepted Accounting Practice; and
• South African Statements of Generally Accepted Accounting Practice.
• International Financial Reporting Standard (IFRS 4)
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Conventional Accounting – Conventional Accounting – Management ReportingManagement Reporting
Fair presentation of financial statements
• The Housing Consumers Protection Measures Act (Act No. 95 of
1998).
• The Public Finance Management Act (Act No. 1 of 1999).
• Standards of Generally Accepted Accounting Practice; and
• South African Statements of Generally Accepted Accounting Practice.
Technical LiabilitiesTechnical Liabilities
0
200
400
600
800
1000
1200
2005/06 2006/07 2007/08 2008/09
Outstanding Claims
Unexpired risks
Unearned Premium
Registration fees R 750 (Inc) per builder
Annual fee R 600 (Inc) per builder
Manuals R 100 (Inc) per set
Enrolment fee structure0 – R500k 1,3% (a)
R501k – R1 mill (a) + 1% of difference (b)
R1 mill – R 2 mill (b) + 0.75% of difference (c)
R 2 mill – R 5 mil (c) +0,5% of difference
Above R 5 mill Maximum of R 34 000
Late Enrolment Fee R 592 (Excl) per enrolment
Revenue AssumptionsRevenue AssumptionsNon-SubsidyNon-Subsidy
Province Number of Units
Gauteng 27 806
KwaZulu-Natal 3 488
Eastern Cape 3 376
Western Cape 7 974
Limpopo 3 834
Northern Cape 1 561
Free State 1 556
North West 3 758
Mpumalanga 2 544
TOTAL: 55 897
Enrolment DistributionEnrolment DistributionNon-SubsidyNon-Subsidy
Non-Subsidy Units R’ Millions
Registrations 4 096 2,7
Renewals 13 079 6,9
Late Enrolments 2 795 1,2
Home Enrolments 55 897 448,3
Technical and Other - 9,9
Builder Grading Discount
- (10.9)
Total: 458,1
Budget Revenue 2010/11Budget Revenue 2010/11
Non-Subsidy Estimated
2008/2009
Budget
2009/2010
Variance
Registrations/renewals 12,6 12,1 (0,5)
Home Enrolments 372,3 448,3 76,0
Technical 52,4 6,1 (46,3)
Grading 0 (11,0) (11,0)
Subsidy
Home Enrolments 23,0 51.5 28,5
Project Enrolments 29,0 98,9 69,9
Other 0.2 2.1 1,9
Total: 490,0 608,5 (118,5)
Revenue VarianceRevenue VarianceR’ MillionR’ Million
Subsidy Enrolments
1,0 % Project enrolment
0,75% Home enrolment fee
Revenue AssumptionsRevenue AssumptionsSubsidy HousingSubsidy Housing
Province Number of Enrolments
Projects
Gauteng 28 125 45 000
KwaZulu-Natal 10 000 20 000
Eastern Cape 15 000 25 000
Western Cape 6 000 6 000
Limpopo 6 644 6 644
Northern Cape 2 500 4 000
Free State 18 000 18 000
North West 13 000 17 000
Mpumalanga 2 000 4 000
TOTAL: 101 269 145 644
Enrolment DistributionEnrolment DistributionSubsidy HousingSubsidy Housing
Subsidy Housing Units R’ Millions
Subsidy Project Enrolment
145 644 51,5
Subsidy Home Enrolment 101 269 98,9
Sub Total: 246 913 150,4
Revenue SubsidyRevenue Subsidy
Non-Subsidy Estimated
2008/2009
Budget
2009/2010
Variance
Registrations/renewals 12,6 12,1 (0,5)
Home Enrolments 372,3 448,3 76,0
Technical 52,4 6,1 (46,3)
Grading 0 (11,0) (11,0)
Subsidy
Home Enrolments 23,0 51.5 28,5
Project Enrolments 29,0 98,9 69,9
Other 0.2 2.1 1,9
Total: 490,0 608,5 (118,5)
Revenue VarianceRevenue VarianceR’ MillionR’ Million
Non-Subsidy Budget
2008/2009
Budget
2009/2010
Variance
Registrations/renewals 12,7 12,1 ( 0,6)
Home Enrolments 561,3 448,3 (113)
Other 2,0 2,1 0,1
Subsidy
Home Enrolments 27,7 51,5 23,8
Project Enrolments 45,8 98,9 53,1
Other – technical invoices - Grading
5,0
(7,2)
6,1
(11,0)
1,1
(3,8)
Total: 647,3 608,5 (38,8)
Revenue VarianceRevenue VarianceRR’’ Million Million
Revenue TrendRevenue Trend
0
100
200
300
400
500
600
700
Non Subsidy (BG) Subsidy Investments
Category
R'm
illio
ns
Actual 2007/08
Estimated 2008/09
Budget 2009/10
Accreditation Costs• Based on number of new applications and number of annual
renewals.• Full credit check done on all new applications.• Full credit check done on 50% of renewals.• Cost per check R 350.00-
Inspection fees
Enrolment value # Inspections AssumedLess than R500 k 4 4R500k – R1 mill 5 5R1 mill – R2 mill 6 6> R2 mill 8 6
Operation ExpenditureOperation ExpenditureAssumptionsAssumptions
Province Number of Inspections
Inspection Fees
R’ MillionGauteng 121 865 17,4
KwaZulu-Natal 18 484 7,8
Eastern Cape 17 893 5,2
Western Cape 34 050 7,4
Polokwane 17 585 10,2
Northern Cape 6 619 2,1
Free State 7 282 2,6
North West 16 861 15,1
Mpumalanga 11 602 4,0
TOTAL: 252 241 71,8
Inspection Non SubsidyInspection Non SubsidyAssumptionsAssumptions
Province Number of Inspections
Inspection Fees
R’ Million
Gauteng 28 125 14,0
KwaZulu-Natal 10 000 5,0
Eastern Cape 15 000 7,5
Western Cape 6 000 3,0
Polokwane 6 644 3,3
Northern Cape 2 500 1,3
Free State 18 000 9,0
North West 13 000 6,5
Mpumalanga 2 000 1,0
TOTAL: 101 269 50,6
Inspection SubsidyInspection SubsidyAssumptionsAssumptions
Expenditure Actual
2008/2009
Budget
2009/2010
Variance
R’ Million
Operating
Inspections - Non Subsidy 82 76 (6)
Inspections - Subsidy - 51 51
Fixed 417 408 (9)
Major variances
Special Projects / Ministerial 150 27 (134)
Employment 140 189 49
Consulting 8 15 7
Emerging Contractor Training 17 36 19
Traveling 18 8 (10)
Major Expenditure VariancesMajor Expenditure VariancesR’ MillionR’ Million
Expenditure Budget
2008/2009
Budget
2009/2010
Variance
Operating
Inspections – Non Subsidy 96 72 (24)
Inspections - Subsidy - 51 51
Other operating expense 10 9 (1)
Fixed 505 408 (97)
Major variances
Special Projects/ Ministerial 161 27 (134)
Employment 181 189 8
Emerging Contractor Training 17 36 19
Other expenses 4 10 6
Major Expenditure VariancesMajor Expenditure VariancesRR’’ Million Million
Course R’ MillionsConstruction Management 2,6
Finance for Non Financial Managers
1,2
Construction Project Management
2,3
Plumbing 2,4
Painting 3,5
Plasters 3,6
Brick Laying 6,2
Roofing 14,8
TOTAL: 36,6
Fixed ExpenditureFixed ExpenditureEmerging Contractor Emerging Contractor
TrainingTraining
Inspection Fees (Subsidy) R 51,0 m
48 Internal subsidy inspectors
Motor Vehicles (Mobile Offices) R 2,4 m
Strategic AdditionalStrategic AdditionalIncome and ExpenditureIncome and Expenditure
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ExpenditureExpenditure
0
100
200
300
400
500
600
2007/08 2008/09 2009/10
Years
R M
illion
Training
Subsidy
Operating costs
Special projects
Asset Mangers
Technical Depreciation
Summary Income Statement Summary Income Statement RR’’ Million Million
Description 2007/8Actual
2008/09Provisional
2009/10Budget
2010/11Budget
2011/12Budget
Total Revenue 647 396 608 651 697
Change in unearned premium/ unexpired risk provision
(51) 237
Operating costs (64) (116) (132) (141) (151)
Gross Margin 532 490 476 510 546
Fixed Costs (225) (417) (408) (431) (457)
Operating Surplus/(Loss)
307 73 68 79 89
Interest Revenue 177 241 217 232 248
Surplus after interest 484 314 285 311 337
• Computer Equipment R 7,5 Million• Furniture R 2,7 Million• Equipment R 1,2 Million• Innovation Hub R 5,0 Million• Motor Vehicles R 3,9 Million
Total: R 20,3 Million
Capital BudgetCapital BudgetR’ MillionR’ Million
Summary Balance Sheet Summary Balance Sheet RR’’ Million Million
Description 2007/8
Actual
2008/09
Provisional
2009/10
Budget
2010/11
Budget
2011/12
Budget
Non-current assets
2,521 2,860 2,929 3,244 3,586
Current Assets
86 192 6 7 7
ASSETS 2,607 3,052 2,935 3,251 3,593
Reserves 1,440 1,970 1,888 2,199 2,535
Current Liabilities
192 233 72 77 83
Technical Liabilities
975 849 975 975 975
Equity and Liabilities
2,607 3,052 2,935 3,251 3,593
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Cash FlowCash Flow
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Cash Inflows / Outflows Excluding Cash Inflows / Outflows Excluding
R25 Million recall in March 2009R25 Million recall in March 2009
-
5,000,000
10,000,000
15,000,000
20,000,000
25,000,000
30,000,000
35,000,000
40,000,000
Jan Feb March April May
Month
Ra
nd Inflow
Outflow
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ActuarialActuarial
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Actuarial ProvisionsActuarial Provisions
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Enrolment Fee Enrolment Fee AdequacyAdequacy
Based on apportionment of budgeted expenses for 2009/10 as well as volumes of new
enrolments, it is our opinion that the enrolment fees charged shall NOT be adequate for
expenses and claims for both non-subsidy and subsidy houses. The utilisation of the
enrolment fee by initial expenses per enrolment is very high, attributable to assumed lower
number of enrolments (2008/09 enrolments) than prior years as well as sticky expenses not
responding to lower new business volumes.
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Enrolment Fee Enrolment Fee AdequacyAdequacy
